Check cashers are entities, agencies, and the like that can monitize third party checks. Some individuals lack a conventional bank account, and thus need to convert any possessed checks into cash via a check casher. The check casher charges the individual a fee or other forms of consideration for providing the check cashing service as well as for taking the risk that the check might bounce due to insufficient funds, fraud, and/or other factors.
For check cashers, the risk of default on checks is high. Until the check casher successfully retrieves the funds from the individual, the risks associated with the loss of the funds as well as returned check fees charged by the check processor are the responsibility of the check casher. Further, check defaults of the check casher increase the risk to the check processor in that unexpected check returns can unexpectedly cause the check casher to exceed a line of credit already extended to the check casher. To reduce default risk, some check cashers will “hold” the funds of a check whereby the individual is required to return to the check casher to receive the funds after the check casher believes that the risk of default has passed.
A need therefore exists for systems and methods to reduce check processing risk. More particularly, a need exists for platforms and techniques for reducing the risks associated with check default and for reducing the overall cost of the check cashing process for the check casher and/or the individual.